The general equation use to calculate increasing or decreasing values
P(t) = A(1 + r)^t
where:
P = New value
A = original or starting amount
r = rate (can be either increasing(+) or decreasing(-))
t = time period that increase/decrease take place.
So after 1 year at 3.8% interest
P = 7500(1 + 0.038)^1
P = 7500(1.038)
P = 7,785
Then after 1 year at 5.35 interest
P = 7500(1 + 0.053)^1
P = 7500(1.054)
P = 7,897.50
